12 May 2008
A bid to gain a tax rebate on pension funds is to be announced
today in an attempt to secure the same VAT treatment for pension
funds as other investment funds. The legal move follows a
favourable ruling in a similar judgment last year by investment
trusts in the European Court.
If successful, the legal challenge would permit pension funds to
claim back around £300m in backdated VAT from the last three
years, as well as save pension funds £100m a year in future
VAT payments.
The case will be brought by £8bn multi-employer scheme
Wheels Common Investment Fund and the National Association of
Pension Funds. Presented initially to the UK VAT and Duties
Tribunal, the case may later be referred to the European Court of
Justice.
A successful challenge would benefit scheme members by cutting
costs and increasing money for investment.
